A Company Failed to Record Unrealized Gains of $20 Million

question 21

Multiple Choice

A company failed to record unrealized gains of $20 million on its available for sale debt security investments. Its tax rate is 30%. As a result of this error, comprehensive income would be:

• A) Understated by $14 million.
• B) Understated by $6 million.
• C) Understated by $20 million.
• D) Unaffected.

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Definitions:

Precontemplation And Contemplation

Stages in the Transtheoretical Model of Change indicating someone’s readiness for change; precontemplation is not considering change, contemplation is considering change but not yet ready to act.

Characteristics Of Clients

Refer to the distinguishing traits, features, or attributes that define individuals or groups receiving services from professionals such as social workers or counselors.

Stages Of Change

A model outlining the phases individuals typically go through when modifying behavior, from precontemplation to maintenance.

Initial Discussions

The first conversations or exchanges about a topic or issue, setting the groundwork for future deliberations.